Coinbase CEO Considers Delisting Cardano (ADA) and 13 Other Altcoins
- admin_hrv2xlob
- March 21, 2024
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Delisting of Cryptocurrency Tokens Raises Concerns over Regulatory Uncertainty
The delisting of digital tokens has become a contentious issue in the world of cryptocurrency, especially due to the lack of clear regulations surrounding it. The CEO of Coinbase, one of the largest cryptocurrency exchanges in the United States, has voiced his belief that removing 13 tokens, including Cardano (ADA), without providing clear justification is unfair.
However, it is important to note that this situation has arisen as a result of a legal battle between Coinbase and the U.S. Securities and Exchange Commission (SEC). The SEC argues that these tokens, although they represent a small portion of Coinbase’s offerings, have not been properly registered as securities.
In a recent interview with Financial Times reporter Scott Chipolina, Brian Armstrong, the CEO of Coinbase, discussed the situation at length. He explained that while the delisting of ADA and other tokens is a concern, it would not have a significant impact on Coinbase’s revenue or overall existence.
Armstrong further argued that imposing regulatory scrutiny before clear rules have been established is unfair and unjustified. He also highlighted the potential negative market effects of the delisting, such as increased selling pressure on undervalued tokens and greater market liquidity.
On the other hand, Cardano’s developer, Input Output Global (IOG), strongly disagrees with the SEC’s stance, asserting that ADA should not be classified as a security.
In response to the SEC lawsuit, Coinbase has already filed a motion to have the case dismissed. The company is drawing parallels to a similar case involving Ripple in order to strengthen its argument against the SEC.
The future of tokens like ADA remains uncertain. Armstrong’s remarks suggest that these tokens may still be traded on other exchanges, even if they are delisted from Coinbase. A favorable resolution of the SEC lawsuit could potentially allow these tokens to continue trading. However, the final outcome of the case is still unclear.
Investors holding Cardano (ADA) and other tokens at risk of delisting should be aware of the associated risks and consider seeking advice from financial experts. ADA’s value has declined by 0.2% in the past 24 hours and 5% in the past week, dropping below $0.30. This represents a nearly 6% decline from its previous surge in value.